The Hindu 14.01.2011
More funds assured to GHMC
Minister agrees to release 95 p.c. of Profession Tax collected in city
The government had agreed to release 95 per cent of the Profession Tax
collected in the capital to the GHMC in the coming financial year of
2011-2012. Minister for Finance A. Ramnarayana Reddy made an assurance
on the issue to Mayor B. Kartika Reddy and Deputy Mayor Jaffer Hussain
when they called on him on Wednesday.
Currently, the government is releasing Rs. 50 crore each year and the
amount is expected to swell up to Rs. 150 crore if the substantial
portion of Profession Tax collected is released. In identical
representation made to the Finance Minister and also Minister for
Municipal Administration & Urban Development, Maheedhar Reddy, the
Mayor and Deputy Mayor complained that GHMC was being deprived of its
legitimate share in revenue transfers from the Government.
Apart from Profession Tax compensation, property tax on government buildings and Motor Vehicle Tax compensation too was sought.
They pointed out that the government had issued orders way back in
1997 to pay property tax on its buildings lumpsum rather than through
individual departments. But, only an amount of Rs.20.13 crore was being
released to GHMC where as the actual demand is Rs.183 crore.
Similarly, the government took over the collection of Motor Vehicles
Tax from the local bodies while promising adequate compensation to the
municipalities. Yet only Rs. 60 lakh per annum was being released to
GHMC whereas a huge amount is being collected in the city by the
Transport Department.
Ms. Reddy pointed out that the municipal corporation was maintaining
nearly 7,000 km of roads under its jurisdiction and thus incurring a
huge expenditure.
The government had also accepted the Second Finance Commission’s
recommendations to allocate 10 per cent of the MV Tax to the local body
and hence, GHMC should be getting at least Rs. 50 crore a year is their
reasoning.